High Demand for Luxurious Cars to Boost Car Audio Companies Growth

Car audios, also known as automotive speakers, are entertainment systems installed in cars. Attributed to expanding industrialization and the population’s inclination toward adopting infotainment systems, automotive speakers have become an essential element of vehicles. The upgrading lifestyle of consumers and their urge to listen to music while traveling is boosting this industry. Over the past few years, audio system has progressed from basic AM receivers to voice-recognizing audio systems.

As per recent research, car audio companies extensively use the Internet of Things (IoT) for managing and maintaining fleets. As per a report by Fortune Business Insights™, the car audio market size is expected to grow from USD 8.82 billion in 2021 to USD 13.52 billion in 2028 at a CAGR of 6.3% during the forecast period. Consumers prefer enjoying their journey by listening to music while traveling in the car. Moreover, cars with music systems have now become a luxury status, and thus the market is estimated to witness growth. Furthermore, automotive speaker manufacturers are adopting advanced technologies to become the frontrunner among other competitors.

COVID-19 Impact: Social Distancing and Lockdown to Hinder Market Growth

The world has seen the disruption of many industries due to the COVID-19 outbreak. Additionally, stringent mandates, such as lockdowns and social distancing, caused an imbalance in supply chain management. Strict regulations of lockdown restricted traveling, which downturned the industry growth. While the education, information and technology, and government sectors adopted online working, there was no way to manufacture and supply automotive speakers through any online mode. Therefore, the above-mentioned factors hampered the market growth.

The automotive audio market majorly relies on the automotive industry due to the installation of audio systems in vehicles. The disruptions in the supply chain and downfall in demand for cars and car audio restricted the growth of the market. Strict implications of precautions and lockdown suppressed the industry growth and product manufacturing. Furthermore, shortage of workforce and raw materials resulted in multiple obstacles in the manufacturing of products. However, the lifting of lockdowns resulted in recovery of the market in most countries.

For instance, in January 2021, Harman expanded its partnership with Iptor to expand its market presence. The companies are partnering together to develop technology and offer a superior user experience with Huemen, a design division by Harman, located in New York (U.S.) This partnership may take a crucial turn when these companies develop their next Iptor DC1 v12.

Fortune Business Insights™ Presents Top 5 Car Audio Companies:

1. Harman

Harman is an American audio electronics company headquartered in Connecticut, U.S. Harman operates in the Americas, Asia, and Europe. It sells its products under multiple brands such as BSS Audio, Crown, DBX, DigiTech, JBL, Lexicon, Mark Levinson, Revel, Martin, Soundcraft, AKG, Arcam, AMX, and Studer.

In October 2021, Harman announced that for the certification of Android Auto Projection, Harman’s facility in Lodz, Poland got approved as a 3rd Part Lab (3PL). This approval will help Harman certify the head units developed by its automaker customers, streamlining the development of products and deployment across Europe.

2. Alpine Electronics Inc.

Alpine Electronics Inc. is a Japanese subsidiary of consumer electronics components manufacturer, Alps Electric. It is one of the major market players of automotive audios concentrating on in-car audio and navigation system of the vehicle. Alpine caters to Brazil, Hungary, Mexico, China, and Thailand. Alpine’s engineering headquarters are located in Iwaki, Fukushima, Prefecture, and Japan.

Alpine launched the F#1 status in June 2021. It is the first-ever status in the industry to achieve the highest specifications recorder in a car audio system, which is 384kHz/32bit high-resolution audio playback.

3. Sony Corporation

Sony is one of the major key players present in electronic products manufacturing, headquartered in Tokyo, Japan. In July 2020, Sony was considered one of the largest companies from capitalization and operating profit, which values over USD 90 billion.

In May 2021, the Mobile ES car audio and subwoofer line-up was launched by Sony Electronics Inc., XS-160ES, XS-690ES, XS-680ES, XS-162ES, and XS-W104ES, giving rise to a new standard for superior in-car entertainment. The Mobile ES line-up helps customers in experiencing their favorite music by uplifting their mood and making a happy environment inside the car.

4. JL Audio

JL Audio is an important producer of consumer audio products, headquartered in Florida, U.S. James Birch and Lucio Proni founded this company in 1975. The company was named after the initials of its founders, ‘JL.’ It is known as the initiator of the automotive audio industry. Its audio products for home, marine, and mobile are famous for their subwoofers.

In October 2021, JL Audio unveiled its work with BRP. The company unveiled that it worked with BRP for developing an audio system. The system comprises four 6.5 inch speakers, a 10-inch subwoofer, and two amplifiers. These units involve cup holders, accent lighting, and USB ports.

5. Pioneer Corporation

Pioneer is a Japan-based multinational corporation founded by Nozomu Matsumoto in 1938 and is headquartered in Tokyo, Japan. It exclusively works in digital entertainment products. Pioneer played an important role in developing the first detachable face car stereo, first automotive compact disc player, DVD, and Supertuner technology.

In June 2021, Voxx International unveiled that it finalized a licensing agreement with the Pioneer and Elite brands of Pioneer “for all markets, excluding China” as a part of its Onkyo acquisition.

High-end Car Audio System Has Become a Status Symbol among the New Generation

The market share is expected to rise in the forthcoming years as people’s interest toward music is consistently rising every day. Moreover, new technological advancements such as voice-recognition audio system, has boosted the sales of automotive and automotive audios. Furthermore, consumers' demand to have a superior driving experience coupled with high living standards will impact the market positively.